Chapter 3 Crimes and Torts © 2003 by West Legal Studies in Business/A Division of Thomson Learning

Criminal Law vs. Civil Law Punishes wrongdoers and isolates them from society Seeks to prove guilt beyond a doubt Civil law Imposes duties on people who draw up and agree to contracts Seeks to prove defendant’s liability by show of evidence

Criminal Law vs. Tort Law Primarily based on statutory law passed by legislatures Punishes wrongdoers Tort Law Emerges from common law precedence Compensates victims Contract law Products or services must meet certain standards as set forth in a valid contract

Classifying Criminal Law Focus on severity or seriousness Felonies vs. misdemeanors Focus other factors such as nature of damage caused Organized crime

Criminal Procedure Investigation Pretrial procedures Trial Sentencing Appeals Secondary liability

Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Business Crimes Compose a scenario to demonstrate your understanding of each of the following crimes Embezzlement Stalking and cyberstalking Mail and wire fraud Computer crime (Continued on the next slide)

Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Business Crimes Compose a scenario to demonstrate your understanding of each of the following crimes Identity theft Bribery Gambling Terrorism Cyberterrorism Money laundering

Defenses to Crimes Infancy Intoxication Insanity Duress Self-defense Necessity

Intentional Torts Against Persons Assault Battery False imprisonment Intentional infliction of emotional distress Invasion of privacy

Intentional Torts Against Property Conversion of personal property Trespass of chattels Trespass to land

Intentional Torts Interfering with Economic Relations Disparagement (sometimes called “trade libel”) One company cannot make false vicious statements about another company Interference with contract rights or prospective business relations One party cannot tamper with the contract of another person or business

General Requirements to Negligence Duty of care Breach of duty Proximate cause Injury Negligence per se Res ipsa loquitur

Defenses to Negligence Contributory negligence Comparative negligence Assumption of risk International jurisdiction

Liability Strict liability Joint and several liability Liability is attached, regardless of who is at fault Proof of negligence is not required Joint and several liability Complete satisfaction of a plaintiff’s damage award is required Provides an incentive for plaintiffs to name wealthier defendants in a lawsuit